Financial Results for the Fiscal Year Ended October 31, 2018
[Japan GAAP] (Consolidated)
Date:

December 7, 2018

Company Name and Code: Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)
Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts: Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127
Date of Annual Shareholders Meeting: January 30, 2019
Date of Dividend Payment:

January 31, 2019

Date of Financial Statement: January 30, 2019
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2018
(1) Results of Operation (Consolidated)(Percent: change from the previous year)
Operating Income
Ordinary Income

Net Sales(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

8.2

2,335

5.2

11.6

2,219

24.7

Year Ended
42,3583.1
2,377
October 31, 2018Year Ended
41,0934.9
2,198
October 31, 2017
(Note) Comprehensive income
Fiscal year ended October 31, 2018: 1,316 million yen (-40.3%)
Fiscal year ended October 31, 2017: 2,282 million yen (440.3%)
Net Income Attributable to
Owners of the Parent(Millions of Yen)

(Percent)

Net Income
per Share

Fully Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales

(Yen)

(Yen)

(Percent)(Percent)(Percent)

5.5

6.3

5.6

5.8

6.2

5.3

Year Ended
1,513
0.7
151.64
October 31, 2018Year Ended
1,503
55.1
150.64
October 31, 2017
(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2018: None
Fiscal year ended October 31, 2017: None
(2) Financial Condition (Consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)(Yen)

37,94627,87673.5

2,793.69

36,58027,00873.8

2,706.72

Year Ended
October 31, 2018Year Ended
October 31, 2017

(Reference) Net assets
Fiscal year ended October 31, 2018: 27,876 million yen
Fiscal year ended October 31, 2017: 27,008 million yen(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
2,192
October 31, 2018Year Ended
587
October 31, 2017

Net Cash Provided(Used) by Investing
Activities

Net Cash Provided(Used) by Financing
Activities(Millions of Yen)
Consolidated Cashand Cash Equivalent
as of Year-end

(281)

(449)

9,354

(392)

(449)

7,893

2. Dividend Status
Dividend per Share (Yen)
SecondEnd ofThird Quarter
Quarter
Fiscal Year
22.50
22.50
22.50
24.50
23.50
23.50

First Quarter-

Year Ending October 31, 2017
Year Ending October 31, 2018Year Ending October 31, 2019 (Prospect)

Total
45.00
47.00
47.00

Total Dividend

Dividend Payout Ratio(Consolidated)

Dividend on Equity Ratio(Consolidated)(Millions of Yen)

(Percent)(Percent)

449
468

29.9
31.0
31.3

1.7
1.7

Year Ending October 31, 2017
Year Ending October 31, 2018Year Ending October 31, 2019 (Prospect)

3. Forecast for the Year Ending October 31, 2018 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales
Full Business Year

Operating Income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

44,300

4.6

2,300

-3.3

2,300

-1.5

Net Income Attributable to
Owners of the Parent
Full Business Year

Ordinary Income

Net Income per Share(Millions of Yen)

(Percent)

(Yen)

1,500

-0.9

150.33

Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
(2) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
1) Change due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year-end (including treasury stocks)
At October 31, 2018: 10,533,200 shares

At October 31, 2017: 10,533,200 shares

2) Number of treasury stocks at year-end
At October 31, 2018: 554,861 shares

At October 31, 2017: 554,817 shares

3) Number of average shares
At October 31, 2018: 9,978,368 shares

At October 31, 2017: 9,978,419 shares*This financial report is exempt from the review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions(Notes on the forward-looking statements, etc.)
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and the assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
For the operating results forecast, refer to (4) [Outlook for the Next Fiscal Year] of 1. [Overview of Operating Results,etc.] on page 4.
(Change in indication of date)
Indication of the date has changed from Japanese calendar to Christian calendar effective with “Financial Results for the
Fiscal Year Ended October 31, 2018”.

Table of Contents of Accompanying Documents
1. Overview of Operating Result, etc.……………………………………………………………………………………..2(1) Overview Concerning Current Operating Results………………………………………………………………....2(2) Overview Concerning Current Financial Condition……………………………………………..…………………..2(3) Overview Concerning Current Cash Flow……………………………………………………..……………………..3(4) Outlook for the Next Fiscal Year………………………………………………………………..……………………..4(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2018 and 2019………………………………….......5
2. Basic Approach to the Selection of Accounting Standards…………………………..………………………………5
3. Consolidated Financial Statements and Main Notes………………………………………………………………....6(1) Balance Sheets…………………………………………………………………………………………………...6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………….8(3) Consolidated Statements of Changes in Shareholders' Equity………..………..……………………………10(4) Consolidated Statements of Cash Flows………………………………………………………………………...12(5) Notes for Consolidated Financial Statements…………………………………………………………………..14(Notes for premise of going concern)…………………………………………………………………………... 14(Segment information)……………………………………………………………………………………………... 14(Per Share information)………………………………………………………….…………………………………17(Significant subsequent events)………………………………………………………………………………….17
4 Other Notes…………………………………………………………….………………………………………………....18(1) Changes of Officers (effective January 30, 2019)………………………………………………………………...18

1

1. Overview of Operating Results, etc.
(1) Overview Concerning Current Operating Results[1] Overview of general operating results
During the consolidated fiscal year ended October 2018, Japan’s economy maintained its gradual recovery trend
despite a temporary slowdown in capital investment and exports caused by natural disaster.
On the other hand, conditions overseas showed a clear sign of the slowdown in Europe’s and China’s economies
despite the ongoing expansionary trend of the US economy.
Given these circumstances, full-year net sales for the Tomoe Engineering Group increased 3.1% from theprevious consolidated fiscal year to 42,358 million yen because of increasing sales in both the Machinery& Equipment Business and the Chemical Products Business. From an earnings aspect, operating income
was 2,377 million yen, 8.2% up from the previous consolidated fiscal year because of higher income in both
the Machinery & Equipment Business and the Chemical Products Business, while ordinary income came to2,335 million yen, 5.2% up from the previous consolidated fiscal year. Net income attributable to owners of
the parent was 1,513 million yen, 0.7% up from the previous consolidated fiscal year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales of machinery, components and repair services for domestic
public sector demand, and net sales of domestic private sector demand in general and machinery, equipment
and works for overseas markets increased. As a result, consolidated net sales for the fiscal year were 11,172
million yen, 9.1% up compared with the previous fiscal year.
From an earnings aspect, operating income was 593 million yen, 12.4% up from the previous consolidated
fiscal year, mainly because of increased profit from the high-margin equipment and works, and components andrepair services.
(Chemical Products Business)
In the Chemical Products Business, net sales of materials for motor vehicles, housing and construction
applications in the industrial materials sector, and net sales of businesses based in Hong Kong and Thailand all
were robust. As a result, consolidated net sales for the fiscal year were 31,186 million yen, 1.1% up from theprevious consolidated fiscal year.
From an earnings aspect, operating income was 1,784 million yen, 6.8% up from the same period last year,
driven by increased income in net sales for products in the industrial materials sector which had comparatively
high margins, the improved profitability in the advanced materials sector, and the results of the consolidated
subsidiary which improved steadily as a whole.
(2) Overview Concerning Current Financial Condition
Current assets at the end of the consolidated fiscal year were 29,454 million yen, up 1,805 million from thebalance at the end of the previous consolidated fiscal year, reflecting a decrease in notes and accounts
receivable-trade, and an increase in cash and deposits, and an increase in merchandise and finished goods.
Noncurrent assets were 8,491 million yen, down 440 million yen from the balance at the end of the previous
consolidated fiscal year, reflecting a decrease in investment securities because of fall of stock prices on securities
holdings.
Liabilities were 10,069 million yen, up 497 million yen from the end of the previous consolidated fiscal year,
mainly because of lowered allowance for product warranty and deferred tax liabilities, and an increase in notes
and accounts payable-trade, and an increase in electronically recorded monetary debt.

2

Net assets were 27,876 million yen, up 867 million yen from the end of the previous consolidated fiscal
year. This mainly reflected an increase of net income attributable to owners of the parent reported at thecurrent consolidated net income.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year decreased by 0.3
point to 73.5% from 73.8% at the end of the previous consolidated fiscal year.
(3) Overview Concerning Current Cash Flow
Balance of cash and cash equivalent (hereinafter “net cash”) as of the end of the current consolidated fiscal year
increased by 1,460 million yen to 9,354 million yen from the previous consolidated fiscal year reflecting net cashused in investing and financing activities, and net cash provided by operating activities. Status of each cash flow
and their factors during the current consolidated fiscal year are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 2,191 million yen. This reflected an increase in income taxes
payment used in 792 million yen and inventory by 539 million yen, and a decrease in income before income taxes
by 2,311 million yen, reservation for depreciation and amortization by 400 million yen, and notes and accounts
receivable-trade by 228 million yen. Net cash provided was increased by 1,604 million yen from 587 million yen
in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 281 million yen. This reflected purchase of property, plant andequipment of 171 million yen, and an increase in guarantee deposits by 47 million yen. Net cash used was
decreased by 111 million yen from 392 million yen in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 449 million yen mainly for the payment of cash dividends in 449 million yen.
Net cash used was 449 million yen, the same amount as the previous consolidated fiscal year.
Trends in cash flow indices

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)Year Ended
October 31,
2014

Year Ended
October 31,
2015

Year Ended
October 31,
2016

Year Ended
October 31,
2017

Year Ended
October 31,
2018

70.8

73.4

72.4

73.8

73.5

51.7

44.3

44.3

59.1

57.4

Debt-repayment to Cash
Flow Ratio (Years)

0.2

-

0.0

0.2

0.0

Interest Coverage Ratio(Percent)

74.5

-

735.6

28.3

68.9

Equity ratio: Net assets/ Total assets
Equity ratio based on market value: Market capitalization of shares / Total assets
Debt-repayment to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow /Interest payment

3(Notes)
1. All indices are calculated on the basis of consolidated financial figures.
2. Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.
3. Cash flow refers to net cash provided by (used in) operating activities.
4. Interest-bearing debt refers to all debt reported on the consolidated balance sheet for which interest is
being paid.
(4) Outlook for the Next Fiscal Year (November 1, 2018 - October 31, 2019)
In the consolidated fiscal year ending October 2019, Japan’s economy is expected to stay on its gradual recovery
track, as capital investment and personal consumption appear to remain robust despite the growth of exports isslowing down. Internationally, while the US economy are forecast to continue robust, the European economy
and the economies in the Asian countries including China continue to be in the deceleration tendency.
Circumstances such as intensified US-China trade friction causing concerns about a downturn in the world
economy make close observation necessary.
Given such conditions, in the Machinery & Equipment Business we forecast net sales of machinery for domestic
private sector demand, and overseas sales of machinery, components and repair services, centered on Asia, will
all be higher. Consequently, we project consolidated net sales of 11,800 million yen, 5.6% up compared with theprevious fiscal year, and operating income of 530 million yen, or 10.7% up from the previous fiscal year reflecting
a predicted increase in selling expenses. In the Chemical Products Business, net sales of raw materials in thedomestic plastics sector, materials for housing and construction application in the industrial materials sector, andmaterials for semiconductor fabrication equipment in the advanced materials sector are expected to grow.
Based on this we expect consolidated net sales to be 32,500 million yen, 4.2% up compared with the previous
fiscal year. On the other hand, we expect operating income to come to 1,770 million yen, 0.8% down comparedwith the previous fiscal year, reflecting the inability to absorb the increased selling and administration expenses.
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October
2019, we project net sales to grow by 4.6% to 44,300 million yen, operating income to decrease by 3.3% to 2,300
million yen, ordinary income to decrease by 1.5% to 2,300 million yen, and net income attributable to the shareholdersof the parent company to decrease by 0.9% to 1,500 million yen.
The operating results forecasts for the next period described above are based on information available to theCompany at the time the forecasts were prepared and assumptions judged to be reasonable. Actual operating
results might differ from these forecasts depending upon changes in domestic and international financial andeconomic conditions, the supply and demand situation, various risk factors and other uncertainties.

4(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2018 and 2019
As its basic policy, the Tomoe Engineering Group will “implement appropriate, stable dividends by seeking toincrease internal reserves to reinforce our financial position and corporate strength, and by considering consolidated
operating results, the group’s medium-term business strategy and other factors in a comprehensive manner.”
Based on the above policy, we plan to pay a dividend of 24.5 yen per share at the end of the consolidated fiscal year
ending on October 31, 2018, up 2.0 yen per share from the previous consolidated fiscal year, considering ofoperating results for this fiscal year and the outlook in future.
For the dividend for the next consolidated fiscal year, we plan to pay 47 yen per share (including an interim dividend
per share of 23.5 yen), based on consideration of the outlook for consolidated operating results.

2. Basic Approach to the Selection of Accounting Standards
At the present time the Tomoe Engineering Group has adopted Japan GAAP, based on factors such as comparability
between firms, and the Group’s policy concerning the application of IFRS will be to respond while referring to outside
trends and other considerations.

53. Consolidated Financial Statements and Main Notes(1) Balance Sheets(Thousands of Yen)
Year Ended October 31, 2017

Year Ended October 31, 2018

Cash and Deposits

7,893,336

9,354,256

Notes and Accounts Receivable-Trade12,423,898

11,834,551

Electronically Recorded Monetary Claims

1,823,085

2,183,842

Merchandise and Finished Goods

3,045,330

3,685,115

Work in Process

1,121,215

981,660

Raw Materials and Supplies

626,777

667,846

Deferred Tax Assets

551,335

630,609

Others169,602

183,711-5,793-67,114

27,648,788

29,454,480

4,447,596

4,459,308

Accumulated Depreciation-1,714,451-1,831,356

Buildings and Structures, Net

2,733,144

2,627,951

Machinery, Equipment and Vehicles

3,753,847

3,697,837-3,339,171-3,304,595

414,676

393,242

1,931,034

1,931,089－

10,606

999,146

980,958-914,964-901,758

84,181

79,1995,163,038

5,042,089

186,343

109,792

Investment Securities

1,520,735

1,374,561

Guarantee Deposits

293,537

340,386

1,693,578

1,554,938

Others101,325

92,654

Allowance for Doubtful Accounts-26,386-22,871

Total Investments and Other Assets

3,582,791

3,339,670

Total Noncurrent Assets

8,932,172

8,491,551

Total Assets

36,580,961

37,946,032

AssetsCurrent Assets

Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets

6

(Thousands of Yen)
Year Ended October 31, 2017

Year Ended October 31, 2018

Notes and Accounts Payable-Trade

4,090,419

4,193,451

Electronically Recorded Monetary Debt

1,665,615

1,857,112

Accounts Payable-Others

520,046

600,382

Income Taxes Payable

437,430

539,919

Advances Received

57,481

70,030

Provision for Bonuses

982,841

1,081,025

Provision for Directors' Bonuses

64,67870,000Allowance for Product Warranty

185,258

160,295

Others

189,552

217,988

8,193,325

8,790,206

Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

57,49857,9051,315,959

1,216,086

Total Noncurrent Liabilities

1,378,918

1,279,452

Total Liabilities

9,572,243

10,069,658

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

23,889,646

24,953,779-363,876-363,977

Total Shareholders’ Equity

26,070,389

27,134,422

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

551,039

433,098

2,508

130

Foreign Currency Translation Adjustment

214,564

186,221

Total Adjustment on Net Defined Benefit

170,216

122,501

Total Accumulated Other Comprehensive Income

938,328

741,950

Total Net Assets

27,008,718

27,876,373

Total Liabilities and Net Assets

36,580,961

37,946,032

Liabilities and Net Assets
Liabilities
Current Liabilities

Total Current Liabilities

Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Treasury Stock7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2017

Year Ended October 31, 2018

Net Sales

41,093,188

42,358,294

Cost of Sales

32,216,513

33,122,636

Gross Profit

8,876,674

9,235,657

Selling, General and Administrative Expenses

6,678,304

6,858,047

Operating Income

2,198,369

2,377,610Interest income

1,301

3,217

Dividends Income

26,771

31,487

Rent Income

6,831

7,306

Foreign Exchange Gains

8,380

-

Others22,85938,712

66,14480,724

Interest Expenses

20,72631,804

Commission Paid

9,000

9,000

Sales Discount

6,133

5,806

Provision of Allowance for Bad Debts-

38,983Foreign Exchange Losses-

34,050

9,499

3,198

Total Non-Operating Expenses

45,359122,843

Ordinary Income

2,219,155

2,335,490

Gain on Sales of Investment Securities

8,524

-

Total Extraordinary Income

8,524

-

-

24,037-24,0372,227,679

2,311,453

Income Taxes-Current

830,225

905,746

Income Taxes-Deferred-105,724-107,453

Total Income Taxes

724,500

798,292

Net Income
Net Income Attributable to
Owners of the Parent

1,503,178

1,513,160

1,503,178

1,513,160

Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

OthersExtraordinary Income

Extraordinary Losses
Loss on Impairment
Total Extraordinary Losses
Income before Income Taxes

8

Consolidated Statements of Comprehensive Income(Thousands of Yen)

Net Income

Year Ended October 31,

Year Ended October 31,

2017

2018
1,503,178

1,513,160

Valuation Difference on Available-for-sale Securities

251,620-117,940

Deferred Gains or Losses on Hedges

20,321-2,377

Foreign Currency Translation Adjustment

124,351-28,343

Adjustment on Net Defined Benefit

382,987-47,715

Total Other Comprehensive Income

779,280-196,377

2,282,459

1,316,783

2,282,459

1,316,783

Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent9

(3) Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (Year Ended October 31, 2017)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

22,833,826

Issued Shares
Reacquired-363,591

1,671
1,061,210

1,483,410

22,835,498

Total Net
Assets25,014,855
1,671-363,591

25,016,527-449,030-449,030

1,503,178

1,503,178
-285

-285

-

-

1,054,148-285

1,053,862

1,061,210

1,483,410

23,889,646-363,876

26,070,389

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

299,418

Deferred
Gains or
Losses on
Hedges-17,813

Foreign
Currency
Translation
Adjustment

90,213

Total Net
DefinedBenefit-212,770

Total Other
Comprehensiv
e Income

159,048

Total Net
Assets25,173,903
1,671

299,418-17,813

90,213-212,770

159,048

25,175,575-449,030
1,503,178-285

251,620

20,321

124,351

382,987

779,280

779,280

251,620

20,321

124,351

382,987

779,280

1,833,143

551,0392,508

214,564

170,216

938,328

27,008,718

10

Current Consolidated Fiscal Year (Year Ended October 31, 2018)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplusRetained
Earnings

Issued Shares
Reacquired

Total Net
Assets

1,061,210

1,483,410

23,889,646-363,876

26,070,389

1,061,210

1,483,410

23,889,646-363,876

26,070,389-449,027-449,027

1,513,160

1,513,160
-100

-100

-

-

1,064,133-100

1,064,033

1,061,210

1,483,410

24,953,779-363,977

27,134,422

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

Deferred
Gains or
Losses on
HedgesForeign
Currency
Translation
Adjustment

Total Net
DefinedBenefit

Total Other
Comprehensiv
e Income

Total Net
Assets551,0392,508

214,564

170,216

938,328

27,008,718

551,0392,508

214,564

170,216

938,328

27,008,718-449,027
1,513,160-100-117,940-2,377-28,343-47,715-196,377-196,377-117,940-2,377-28,343-47,715-196,377

867,655

433,098130

186,221122,501

741,950

27,876,373

11

(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Year EndedYear Ended

October 31, 2017

October 31, 2018

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes and Minority Interests
Depreciation and Amortization

2,227,679
416,872

2,311,453
400,068

Increase (Decrease) in Provision for Bonuses

177,069

98,176

Increase (Decrease) in Provision for Directors' Bonuses

14,326

5,321

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Net Defined Benefit Liability

77,908(24,963)870

407

Decrease (Increase ) in Net Defined Benefit Asset(24,155)(28,492)(129)

57,895Interests and Dividends Income(28,073)(34,705)

Interest Expenses

20,72631,804Foreign Exchange Losses (Gains)

49,918(7,050)Loss (Gain) on Sales of Investment Securities(8,524)--24,037(1,016,706)

228,685

Decrease (Increase) in Inventories(285,845)(539,626)

Increase (Decrease) in Notes and Accounts Payable-Trade

250,189

292,057

Increase (Decrease) in Accounts Payable-Others(31,217)65,975

Increase (Decrease) in Advances Received(290,874)

12,45879,72887,378

1,629,763

2,980,881

Interests and Dividends Income Received

28,026

34,698Interest Expenses Paid

(20,726)(31,804)(1,049,876)(792,568)

587,187

2,191,206

Increase (Decrease) in Allowance for Doubtful Accounts

Loss on Impairment
Decrease (Increase) in Notes and Accounts
Receivable-Trade

Others, Net
Sub total

Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

12(Thousands of Yen)
Year EndedYear Ended

October 31, 2017

October 31, 2018

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(4,900,000)(4,000,000)

Proceeds from Withdrawal of Time Deposits

4,900,000

4,000,000

Purchase of Property, Plant and Equipment(181,883)(171,856)

Proceeds from Sales of Property, Plant and Equipment

1,638

3,450

Purchase of Intangible Fixed Assets(4,235)(41,586)

Purchase of Investment Securities(19,683)(21,340)

Proceeds from Sales of Investment Securities

15,244-

Payments of Loans Receivable(2,020)(3,930)

Collection of Loans Receivable

1,860

3,440

Guarantee Deposits (Increase)(201,193)(47,005)(2,294)(2,427)(392,566)(281,257)

(285)

(100)

(449,030)(449,027)(449,316)(449,127)

91,80997(162,886)

1,460,919

8,056,223

7,893,336

7,893,336

9,354,256

Others, Net
Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Acquisition of Treasury Stock
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of This Fiscal Year13

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
There are no pertinent matters to report.
(Segment information)
1. Summary of reporting segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks
and sells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2. Method for calculating amounts of net sales, income or loss, assets, liabilities and other items for each reporting
segment
The accounting methods for reporting segments are identical to the accounting methods adopted for preparation of
the consolidated financial statements.

3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items for each reporting
segment
Previous Consolidated Fiscal Year (Year Ended October 31, 2017)(Thousands of Yen)
Amount ofConsolidated
Adjustment
Financial
Note 1
Statements
Reported
AmountReporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets

Chemical
Products
Business

Total

10,241,914

30,851,273

41,093,188-

41,093,188

-

-

-

-

-

10,241,914
528,306
10,213,195

30,851,273
1,670,063
16,952,694

41,093,188
2,198,369
27,165,889

9,415,072

41,093,188
2,198,369
36,580,961

314,283

102,589

416,872-

416,872

123,754

68,568

192,322-

192,322(Notes)1. The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.

14

Current Consolidated Fiscal Year (Year Ended October 31, 2018)(Thousands of Yen)
Consolidated
Amount of
Financial
Adjustment
Statements
Note 1
Reported
AmountReporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets

Chemical
Products
Business

Total

11,172,075

31,186,218

42,358,294-

42,358,294

-

-

-

-

-

11,172,075
593,5999,804,446

31,186,218
1,784,011
17,411,767

42,358,294
2,377,610
27,216,214

10,729,818

42,358,294
2,377,610
37,946,032

298,179

101,888

400,068-

400,068

157,682

70,117

227,800-

227,800(Notes)1.The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.
(Related information)
Previous Consolidated Fiscal Year (Year Ended October 31, 2017)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.
2. Regional Information
1. Net SalesJapan
32,405,056(Thousands of Yen)Asia
7,088,888

Others1,599,242

Total
41,093,188(Note)Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan4,858,891

Asia
155,695(Thousands of Yen)
Others148,451

Total
5,163,038

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.

15

Current Consolidated Fiscal Year (Year Ended October 31, 2018)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.
2. Regional Information
1. Net SalesJapan
33,871,323(Thousands of Yen)Asia
7,406,701

Others1,080,268

Total
42,358,294(Note) Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan4,710,886(Thousands of Yen)Asia
189,972

Others141,230

Total
5,042,089

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.
(Information concerning impairment losses on fixed assets by reporting segment)
Previous Consolidated Fiscal Year (Year Ended October 31, 2017)
There are no pertinent matters to report.
Current Consolidated Fiscal Year (Year Ended October 31, 2018)(Thousands of Yen)

Reported segments
Machinery &Equipment
Business
Impairment loss

24,037

Chemical
Products
Business

Subtotal-

24,037

Elimination at
the Company

Total

-

(Information concerning amortization of goodwill and unamortized balances by reporting segment)
There are no pertinent matters to report.
(Information concerning gain on negative goodwill by reporting segment)
There are no pertinent matters to report.

16

24,037(Per Share Information)
Year EndedYear Ended

October 31, 2017

October 31, 2018
72

Net Asset per Share¥2,706..

¥2,793.69

Net Income per Share¥150.64¥151.64(Note 1) Income per share for this fiscal year after adjustment of the residual securities is not presented as there are noresidual securities.
(Note 2) Calculation basis for net income per share are as follows:Year EndedYear Ended

October 31, 2017

October 31, 2018

Net Income for this Fiscal Year (thousands of yen)

1,503,178

1,513,160

Net Income for Common Stock (thousands of yen)

1,503,178

1,513,160

Average number of Common Stock during the Fiscal Year9,978,419

9,978,368(Note3) Calculation basis for net asset per share are as follows:

Total for Net Asset in Consolidated Balance Sheet(thousands of yen)
Net Asset for Common Stock (thousands of yen)
Number of Common Stock used for calculation of Net Assets
per Share (share)(Significant subsequent events)
None
.

17

Year EndedYear Ended

October 31, 2017

October 31, 2018

27,008,718

27,876,373

27,008,718

27,876,373

9,978,383

9,978,339

4. Other Notes(1) Changes of Officers (effective January 30, 2019)
1) Candidate for Director to be newly appointed (excluding the directors serving as Audit & Supervisory Committee
Members)
Name
Atsushi Sada

New Position

Current Position

Director

General Manager, Technical Development Dept.,

Deputy General Manager, Machinery & Equipment

Machinery & Equipment Div.

Div. (in charge of Production), and Manager ofSagami Plant

2) Candidate for Director serving as Audit & Supervisory Committee Member
Name
Tatsuo Hasunuma

New Position

Current Position

Outside Director (Director serving as Audit &Outside Director (Substitute Director serving as Audit

Supervisory Committee Member)& Supervisory Committee Member)3) Director scheduled to retire
Name
Jun Ohashi

Current Position
Director
Deputy General Manager, Machinery & Equipment
Div. (in charge of Production), and Manager ofSagami Plant

Minoru Imai

Outside Director (Director serving as Audit &Supervisory Committee Member)

4) Candidate for Substitute Director serving as Audit & Supervisory Committee Member
Name
Naohiro Chikada

New Position

Current Position

Outside Director (Substitute Director serving as Audit

Certified Public Accountant and Certified Tax& Supervisory Committee Member)

Accountant
Representative Partner, Koa Audit Corporation

18